Ted Is Trying to Decide What Cost of Capital He

Multiple Choice

Ted is trying to decide what cost of capital he should assign to a project.Which one of the following should be his primary consideration in this decision?

A) Amount of debt used to finance the project
B) Use, or lack, of preferred stock as a financing option
C) Mix of funds used to finance the project
D) Risk level of the project
E) Length of the project's life